BQA-07 Negotiating Lesson Rates
About this guide
Some prospective students will try to haggle with you and bring your lesson rate down. Even a small change in your rate can make a significant difference to your overall income over time. This guide will prepare you for people trying to bring your price down and show you how to negotiate your lesson rates in a fair way.
Why you need to be prepared
While most students will be happy to pay the rate as advertised (assuming it is a fair rate), some people will try to bring that rate down to save them money. Being caught off guard by one of these people can end up with you earning a less than fair rate. The people who try to bring your price down are the type of people who do it regularly for other products and services. They've had practice with it so have a good success rate. Unless you prepare yourself against anybody trying to talk your price down, you could end up in trouble.
A $5 discount may not sound like much but for a weekly lesson that $5 discount means you will miss out on $250 a year just from one student. You definitely wouldn't agree to giving a student $250 worth of lessons for free at the start so keep this in mind if they try to ask for a discount.
The problem is compounded if you let it happen regularly. Having five or ten students on your books each with a $5 lesson discount will cost you thousands every year. Preparing against this can really save you a lot of money.